American Express Company (NYSE:AXP) will report its third quarter financial results before the market opens on Friday, October 20, 2023, and the consensus expectation of Wall Street analysts is that it will report a double-digit percentage growth in both revenue and profits.
Street analysts expect the financial services firm to revenue of $15.42 billion, up 13.7% from $13.56 billion in the year-ago quarter.
Earnings per share (EPS) are projected to be 19.8% higher than 3Q 2022, up from $2.47 to $2.96, according to Zacks Investment Research.
Based on Zacks’ model, an earnings beat is likely for American Express.
It is expected to have seen increased network volumes in 3Q from higher total billed business and processed volumes, continuing a trend observed in the past few quarters.
As travel and entertainment-related spending has also increased, Zacks forecasts International Card Services revenue of $2.7 billion, up almost 16% from the $2.3 billion recorded in the year-ago quarter.
Analysts also expect the company interest income, a large revenue contributor, to have increased on higher loan disbursements.
On a less positive note, Zacks expects American Express’ expense to increase 12% year-over-year and a substantial provision for credit losses, forecasting a year-over-year increase of 40% to its “rainy-day funds.”
Shares of American Express traded lower on Wednesday afternoon, down 1.6% at about US$152.
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